Jay's Pharmacy owes the same creditor two debts of $6,000 due one year ago and $7,500 due in two years. Jay has proposed making two alternative payments of $10,000 due in three months and a final payment in 2½ years. If the creditor is agreeable to this proposal and wants an interest rate of 9 % compounded quarterly, what is the amount of the final payment.

Jay's Pharmacy owes the same creditor two debts of $6,000 due one year ago and $7,500 due in two years. Jay has proposed making two alternative payments of $10,000 due in three months and a final payment in 2½ years. If the creditor is agreeable to this proposal and wants an interest rate of 9 % compounded quarterly, what is the amount of the final payment.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5Q: If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the...

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